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Market hits fresh intraday high on positive European cues

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Capital Market
Last Updated : Oct 18 2013 | 11:55 PM IST

Key benchmark indices hit fresh intraday high in afternoon trade after European market opened higher. The barometer index, the S&P BSE Sensex, hit its highest level in more than 35 months. The S&P BSE Sensex was up 363.18 points or 1.78%, up 292 points from the day's low. The market breadth, indicating the overall health of the market, was positive. The market sentiment was boosted by data showing that foreign funds made substantial purchases of Indian stocks on Thursday, 17 October 2013. In the foreign exchange market, the rupee reversed gains against the dollar.

Key benchmark indices edged higher in early trade on firm Asian stocks. Key benchmark indices extended initial gains and hit fresh intraday high in morning trade. The uptrend on the bourses continued as key benchmark indices hit fresh intraday high in mid-morning trade. Market pared gains after hitting fresh intraday high in early afternoon trade. The barometer index, the S&P BSE Sensex pared gains after hitting its highest level in more than 35 months. Key benchmark indices hit fresh intraday high in afternoon trade after European market opened higher.

The market sentiment was boosted by data showing that foreign funds made substantial purchases of Indian stocks on Thursday, 17 October 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 1,109.93 crore on Thursday, 17 October 2013, as per provisional data from the stock exchanges.

At 13:15 IST, the S&P BSE Sensex was up 363.18 points or 1.78% to 20778.69. The index jumped 366.21 points at the day's high of 20,781.72 in afternoon trade, its highest level since 11 November 2010. The index rose 71.27 points at the day's low of 20,486.78 in opening trade.

The CNX Nifty was up 109.90 points or 1.82% to 6,155.75. The index hit a high of 6,159.05 in intraday trade, its highest level since 21 May 2013. The index hit a low of 6,070.90 in intraday trade.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,261 shares gained and 916 shares fell. A total of 149 shares were unchanged.

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Among the 30 shares in the Sensex pack, 27 rose and the rest declined. Sesa Sterlite (up 6.68%), Tata Steel (up 5.29%), ICICI Bank (up 3%), HDFC Bank (up 2.74%), Dr Reddy's Laboratories (up 2.45%), Reliance Industries (up 2.21%), State Bank of India (up 2.18%), HDFC (up 2.04%), Wipro (up 1.93%), Hindalco Industries (up 1.93%) and Maruti Suzuki India (up 1.79%), edged higher from the Sensex pack.

Bhel (down 0.58%), Bajaj Auto (down 0.39%) and Cipla (down 0.04%), edged lower from the Sensex pack.

Prestige Estates Projects (up 8.32%), Jain Irrigation Systems (up 5.41%), TV18 Broadcast (up 4.94%), IndusInd Bank (up 4.68%), MCX (up 4.51%), Hindustan Zinc (up 4.29%) and IFCI (up 4.09%), were the leading gainers in the BSE's 'A' group.

PVR rose 2.78% to Rs 498.30 after the company said it has entered into an agreement for the sale of its Anupam Multiplex property in New Delhi for a total consideration of Rs 52 crore.

In the foreign exchange market, the rupee reversed gains against the dollar. The partially convertible rupee was hovering at 61.65, compared with its close of 61.23/24 on Thursday, 17 October 2013.

European stocks rose in early trade on Friday, boosted by data showing an acceleration in China's economic growth. Key benchmark indices in UK, France and Germany were up by 0.14% to 0.45%.

Asian markets were mostly higher on Friday, 18 October 2013, after the latest data showed that China's economic growth accelerated in Q3 September 2013. Key benchmark indices in China, South Korea, Hong Kong, Singapore and Taiwan rose by 0.18% to 0.79%. Key benchmark indices in Indonesia and Japan fell 0.07% to 0.17%.

The Chinese economy grew at an annual rate of 7.8% in Q3 September 2013, accelerating from the second quarter's 7.5% increase. The Chinese government is aiming for economic expansion of at least 7.5% this year.

Another data showed industrial production and retail sales growth in September 2013 easing off their levels from the previous month. Industrial production rose 10.2% in September 2013 from a year earlier, compared with 10.4% growth in August 2013. Retail sales climbed 13.3% in September 2013, compared with 13.4% increase in August 2013.

Trading in US index futures indicated that the Dow could advance 21 points at the opening bell on Friday, 18 October 2013. US stocks ended mostly higher on Thursday, lifting the S&P 500 to a record finish, as Wall Street turned from the latest fiscal drama on Capitol Hill to corporate earnings that included better-than-expected results from Verizon Communications Inc.

After risking a US default, US lawmakers this week agreed to fund the government through Jan. 15 and suspend the debt limit through Feb. 7. US President Barack Obama on Thursday, 17 October 2013, said that the stalemate over US fiscal policy that shut the government for 16 days "encouraged our enemies" and slowed economic growth.

Fed Bank of Chicago President Charles Evans said on Thursday, 17 October 2013, that the central bank should postpone tapering after the shutdown stopped the flow of economic reports used to gauge growth. Minneapolis Fed President Narayana Kocherlakota said policy makers should signal they are prepared to do "whatever it takes," including providing more stimulus, to reduce the jobless rate from August's 7.3%. Fed Bank of Kansas City President Esther George, who has voted this year against expanding stimulus, said that the Fed has enough data to assess the economy's strength and should start tapering even amid fiscal "uncertainty." Evans and George both hold voting positions on the central bank's policy committee this year. Kocherlakota votes in 2014.

The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.

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First Published: Oct 18 2013 | 1:15 PM IST

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